European Stocks Fall As Tariff Threat Dents Strong Quarter
The Stoxx Europe 600 outpaced the S&P 500 by nearly 17% percentage points this quarter in dollar terms .
European stocks fell for a fourth straight session as the threat of a fresh wave of US tariffs hit stocks most exposed to trade tensions.
The Stoxx Europe 600 Index was down 1.1% by 8:15 a.m. London time, with mining, bank and auto shares among the worst performers.
In individual stocks, Associated British Foods Plc shares fell as much as 4.6% after the chief executive officer of its Primark fashion chain resigned. Fortnox AB shares rose 36% after a consortium including funds managed by EQT AB offered to take the Swedish financial services firm private in a deal valued at 44.5 billion kronor ($4.5 billion).
The US President Donald Trump said he plans to start his reciprocal tariff push with “all countries” ahead of the unveiling of levies on April 2, putting a dent into a strong quarter for European shares.
“In the current political landscape the threat of tariffs is never far away,” said Thomas Watts, senior investment analyst at Aberdeen MPS. “The latest announcement of a 25% tariff on all imported cars into the US is only the latest measure in a burgeoning trade war that could have a significant effect on Europe’s largest companies.”
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The Stoxx Europe 600 outpaced the S&P 500 by nearly 17% percentage points this quarter in dollar terms — a record outperformance - as a wave of optimism around fiscal and defense spending in Germany gave the region a boost.
Aberdeen’s Watts said Europe has relative political stability and decreasing borrowing costs, which could benefit domestically exposed companies such as European small caps.
In other individual stock moves, weight-loss drug maker Novo Nordisk A/S fell 1.6% following data for an Ozempic drug trial.
For more on equity markets:
Historic Quarter in Europe Induces Some Caution: Taking Stock
M&A Watch Europe: Fortnox, Banco BPM, Sondrio, Aston Martin, RWE
US Stock Futures Fall as Concerns Grow Over Tariff Announcements
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